Energy and Electricity Minister Dr Kgosientsho Ramokgopa has expressed concern about the high electricity prices in the country.
The minister said review of the energy pricing policy is imperative, for setting a clear pricing policy for the industry and National Energy Regulator of South Africa (Nersa) to implement.
He said most of the people who are bearing the brunt of the prices are poor households.
Ramokgopa was briefing the media on energy and electricity related issues in Pretoria.
“We must determine a threshold for the average consumption of a poor household.
On the one hand you’re giving them social grants, old age pension grant, child grant, all the grants, and you say you’re helping the poor.
But on the other side you’re taking it back through these tariffs.
So, you’re negating the impact of the social wage,” said Ramokgopa.
The minister is adamant that the electricity pricing policy is going to strike a balance by providing affordable electricity tariffs for low-income consumers.
He also blamed municipalities for a slow pace to register indigent households into their system, adding that his department is working together with the South African Local Government Association (SALGA) and municipalities, to find a lasting solution.
“There’s been an exponential rise in the cost of electricity.
Our electricity pricing plan needs to kick in and that’s the primary preoccupation of the work of the ministry now working with Eskom, working with municipalities and working with SALGA,” explained Ramokgopa.
The minister’s comments come after Nersa gave Eskom a green light to increase electricity prices by 12.75%, and the R200 network service fee implemented by City Power at the City of Joburg.
Ramokgopa cautioned that the price hikes are impacting vulnerable residents
“There’s an appreciation that it’s important that we pull together.
This situation is untenable.
Communities are getting more and more enraged, and people just can’t afford the cost of electricity,” warned the Minister.
